Updates, advisories and surprises

(6:21 PM ET) SAN FRANCISCO (MarketWatch) Aon Corp.
AOC, -2.96%
said late Thursday that fourth-quarter net income came in at $224 million, or 68 cents a share, little changed from a year earlier when the insurance brokerage and consulting firm made $224 million, or 65 cents a share. Net income from continuing operations was $189 million, or 58 cents a share. Excluding restructuring charges and a tax adjustment, Aon said it made 67 cents a share in the period. The company was expected to earn 63 cents a share, according to the average estimate of 17 analysts in a Thomson Financial survey. Organic revenue growth at Aon's main insurance brokerage division was 2%, the company said. Aon also said it found incorrect measurement dates for some stock options that were granted in 2000 and prior years. The company said it has not found any intentional misconduct or self-dealing, including backdating or other manipulation of pricing.

Nationwide Financial quarterly net income rises 18%

(5:31 PM ET) SAN FRANCISCO (MarketWatch) -- Nationwide Financial Services
NFS, +2.05%
said late Thursday that fourth-quarter net income came in at 154.2 million, or $1.03 a share, up 18% from a year earlier when the life insurer made $130.3 million, or 85 cents a share. Operating earnings, which exclude net realized investment gains and losses, were $144.7 million, or 97 cents a share, the company added. Nationwide was expected to make $1.01 a share, according to the average estimate of 18 analysts in a Thomson Financial survey.

Oakley fourth-quarter earnings drop while sales climb

(5:28 PM ET) LOS ANGELES (MarketWatch) -- Oakley Inc.
OO
said Thursday that fourth-quarter net income was $7.67 million, or 11 cents a share, vs. $9.58 million, or 14 cents a share, for the same period a year ago. Sales for the sunglass maker were $196.4 million vs. last year's $162.4 million. Analysts polled by Thomson Financial had expected the company to earn 13 cents a share on sales of $187 million.

(5:07 PM ET) SAN FRANCISCO (MarketWatch) -- Energy provider Allegheny Energy, Inc.
AYE
reported late Thursday fourth-quarter net income of $64.6 million, or 38 cents a share, up from $3.1 million, or 2 cents a share, a year ago. The company attributed the steep gains in part to better performance at its power plants and the expiration of below-market sales contracts. Revenue for the three months ended Dec. 31 rose 1.8% to $737 million from $724.1 million. Allegheny, based in Greenburg, Pa., closed ahead of the report at $47.22 a share, a 28-cent gain for the day.

Energy Conversion quarterly loss narrows; updates outlook

(4:54 PM ET) SAN FRANCISCO (MarketWatch) -- Energy Conversion Devices Inc.
ENER, +0.00%
after Thursday's closing bell reported a second-quarter net loss of $2.91 million, or 7 cents a share, compared with a net loss of $5.74 million, or 19 cents a share, during the year-ago period. The Rochester Hills, Mich.-based alternative energy company posted total revenue of $22.9 million vs. $24.3 million. Analysts polled by Thomson Financial had forecast a second-quarter loss of 6 cents a share on revenue of $33 million. Additionally, Energy Conversion said it's on track with a number of its businesses, including United Solar Ovonic. The company also said that, at this time, it doesn't expect to achieve "sustainable profitability" by the end of the fiscal year, as previously projected. It has taken longer than expected to secure additional funding opportunities for emerging technologies, Energy Conversion said. The company said it plans to pursue restructuring alternatives in the near term to achieve its goal of sustainable profitability.

McAfee says profit falls 9%, revenue beats expectations

(4:42 PM ET) SAN FRANCISCO (MarketWatch) -- McAfee Inc. said Thursday its fourth-quarter profit fell 9%, while sales rose 20% and beat analyst expectations. McAfee
MFE, -0.54%
said net income for its fiscal fourth quarter ended Dec. 31 fell to $35 million, or 21 cents a share, from $38.6 million, or 23 cents a share during the period a year ago. Revenue for the quarter rose to $305.2 million, McAfee said. Analysts surveyed by Thomson Financial had expected revenue of $291 million. The results reported Thursday are only preliminary, McAfee said, as the company is going to restate past financial results to record charges from improper granting of stock options. McAfee said it will restate its financials "as soon as practicable." McAfee, a Santa Clara, Calif.-based maker of security software, said that for the first quarter of 2007, it expects earnings between 17 cents and 22 cents a share, and sales of between $280 million and $300 million.

Gateway Inc. swings to $8.8 million profit

(4:38 PM ET) SAN FRANCISCO (MarketWatch) -- Gateway Inc.
GTW
on Thursday reported a fiscal fourth-quarter profit of $8.8 million, or 2 cents a share, compared to a loss of $20.9 million, or 5 cents a share, a year ago. Revenue slipped about 9%, to $1.02 billion from $1.124 billion in the year-ago quarter. Analysts surveyed by Thomson First Call forecast Gateway to earn 2 cents a share or $1.05 billion in revenue. The personal-computer maker said its gross margins as a percent of revenue fell to 5.2% from 6.2% a year ago as Gateway faced lower margins in its retail operations.

CORRECT: Aeropostale same-store sales rise 1.7% in December

(4:34 PM ET) NEW YORK (MarketWatch) -- Aeropostale
ARO, +0.00%
said on Jan. 4 that same-store sales for the five weeks ended Dec. 31 increased 1.7%, ahead of the forecast of 1.3% in a survey of analysts by Thomson First Call. Total sales grew by 12.6% to $266.7 million. The New York-based retailer increased its fourth-quarter earnings forecast to 91-93 cents a share, excluding items, from its previous target of 89-91 cents a share. (Corrects company description from Jan. 4 news item.)

Callaway Golf quarterly loss narrows; updates 2007 outlook

(4:27 PM ET) SAN FRANCISCO (MarketWatch) -- Callaway Golf Co.
ELY, -0.15%
after Thursday's closing bell reported a fourth-quarter net loss $10.2 million, or 15 cents a share, compared with a net loss of $18.7 million, or 27 cents a share, during the year-ago period. Excluding charges for equity-based compensation, among other items, the per-share loss was 11 cents. The Carlsbad, Calif.-based company posted revenue of $179.9 million vs. $154.5 million. Analysts polled by Thomson Financial had forecast fourth-quarter loss of 13 cents a share on revenue of $173 million. Additionally, Callaway Golf said it expects 2007 per-share pro forma earnings, including charges for employee long-term incentive compensation, of 66 cents to 76 cents on revenue of $1.035 billion to $1.055 billion. Excluding those charges, the company said it sees pro forma earnings of 75 cents to 85 cents a share for the year.

Oakley annual income drops, while sales rise

(4:24 PM ET) LOS ANGELES (MarketWatch) -- Oakley Inc.
OO
said Thursday that 2006 net income totaled $44.8 million, or 65 cents a share, compared with $59.7 million, or 87 cents a share a year ago. Revenue for the sunglass maker was $761.9 million vs. last year's $648.1 million. The company did not break out fourth-quarter results. Analysts polled by Thomson Financial had expected the company to earn 69 cents a share for the year on sales of $749 million. Oakley said it expects to earn 94 cents to 97 cents a share on sales of $900 million to $930 million during 2007. The Thomson Financial estimate is for earnings of 96 cents a share on sales of $854 million. Shares ended trading Thursday up a penny to $22.52.

Broadcom profit falls on options charge, sales up

(4:23 PM ET) SAN FRANCISCO (MarketWatch) -- Broadcom Corp.
BRCM
late Thursday reported its fourth-quarter profit fell from a year ago, hurt by charges to correct its stock-option accounting, while its sales rose on demand for its communications chips. Broadcom said fourth-quarter net income was $45.1 million, or 8 cents share, down from $186.7 million, or 32 cents a share, a year ago. The latest results included a charge of $50.6 million. For the three months ended Dec. 31, revenue rose 12.5% to $923.5 million. Based in Irvine, Calif., Broadcom designs chips used in Internet cable modems, satellite-TV set-top boxes, high-speed Internet service over phones lines, portable music players and wireless handsets. Its biggest customers are Motorola Inc. and Cisco Systems Inc. Separately, it announced a stock repurchase program worth up to $1 billion. The company said the buyback program begins Feb. 12.

Embarq profit rises on higher Internet sales

(4:15 PM ET) WASHINGTON (MarketWatch) - Embarq Corp., the local phone company once owned by Sprint Nextel Corp., said Thursday that net income in the fourth-quarter rose 25% as the carrier added more high-speed Internet subscribers and lost fewer local-phone customers than expected. The Overland Park, Kan.-based company said profit rose to $194 million, or $1.28 a share, from $155 million a year earlier. Since the company was still part of Sprint in the 2005 fourth quarter, there's no corresponding per-share comparison. Revenue 0.9% to $1.62 billion. Adjusted for the spinoff, Embarq
EQ, -6.25%
said revenue fell 5.7% from a year ago. The company said adjusted numbers present more accurate comparisons with year-earlier results. Embarq was forecast to earn $1.04 a share on revenue of $1.60 billion, based on the average of analysts surveyed by Thomson Financial.

Juniper Networks raises stock buyback plan by $1 bln

(2:03 PM ET) SAN FRANCISCO (MarketWatch) -- Juniper Networks Inc.
JNPR, -2.13%
said Thursday it has approved an increase of $1 billion under its share buyback program. A total of $2 billion is now authorized for the repurchase of company stock, the Sunnyvale, Calif.-based Internet equipment maker said.

U.S. Global Investors' quarterly profit more than doubles

(12:56 PM ET) SAN FRANCISCO (MarketWatch) -- U.S. Global Investors Inc.
GROW, -3.79%
said Thursday fiscal second-quarter net earnings more than doubled, rising to $2.46 million, or 32 cents a share, from $1.17 million, or 15 cents a share, in the year-ago period. Revenue in the three months ended Dec. 31 climbed to $12.42 million from $7.76 million. Mutual fund assets under management averaged $4.53 billion in the quarter, up from $2.83 billion in the same quarter last year. U.S. Global shares fell 61 cents to $45.59 in Thursday afternoon trade.

Sun Life Financial quarterly profit rises 14%

(12:54 PM ET) SAN FRANCISCO (MarketWatch) -- Sun Life Financial Inc.
SLF, -1.46%
(CA:SLF)on Thursday reported fourth-quarter net earnings of C$545 million ($460.2 million), or 95 Canadian cents a share, up 14% from C$478 million, or 82 Canadian cents a share. The Toronto-based financial services company posted revenue of C$6.14 billion vs. C$5.34 billion. Operating return on equity was 14% for the quarter, up from 13.3% a year ago.

(11:31 AM ET) SAN FRANCISCO (MarketWatch) -- Trend Micro Inc.
TMIC
(JP:4704)said Thursday that Chief Executive Eva Chen has reached a settlement with the Securities and Exchange Commission. The settlement resolves alleged violations of Section 10(b) of the Securities Exchange Act of 1934 as well as Rule 10b-5 involving her spouse, Daniel Chiang, and trading in Sina Corp.
SINA, -0.60%
securities. Chiang is former co-chairman of Sina. Under the settlement, Chen neither admitted nor denied the allegations, and agreed to pay the SEC a civil penalty and not to violate securities laws. Financial terms weren't disclosed. Tokyo-based Trend Micro also said its board has affirmed its confidence in Chen's ability to continue to serve as CEO and as a director.

Luminex swings to a profit; shares rise

(11:12 AM ET) SAN FRANCISCO (MarketWatch) -- Luminex Corp.
LMNX, -0.94%
shares jumped 23% to $15.65 in Thursday morning trade after the Austin, Texas-based developer of biological testing services late Wednesday reported fourth-quarter net earnings of $599,000, or 2 cents a share. In the same quarter last year, the company posted a net loss of $1.35 million, or 4 cents a share. Revenue rose to $14.2 million from $11.6 million.

Jefferies lowers rating on New Century to hold

(10:51 AM ET) NEW YORK (MarketWatch) -- Jefferies & Co. on Thursday lowered its rating on New Century Financial
NEW, +12.43%
to hold on book value concerns following a warning on loan production from the company and a coming profit restatement. "While we acknowledge this has the hallmarks of a 'downgrade at the bottom', we believe it is better to acknowledge our mistakes than compound a bad stock call with stubbornness," analyst Richard B. Shane said in a note to clients. Jefferies sees the company's book value falling to $24 to $28 a share when the company announces fourth-quarter results.

Isilon Systems shares fall on fourth-quarter results

(10:42 AM ET) SAN FRANCISCO (MarketWatch) -- Isilon Systems Inc.
ISLN, +1.09%
shares fell 14% to $21.67 in Thursday morning trade after the Seattle-based developer of clustered storage systems and software late Wednesday reported a fourth-quarter net loss of $10.4 million, or 72 cents a share, vs. a net loss of $4.08 million, or 78 cents a share, last year. There were 14.55 million shares outstanding in the quarter ended Dec. 31, compared with 5.25 million a year ago Excluding items, the company posted a loss of $3.3 million, or 6 cents a share, compared with a loss of $4.1 million, or 9 cents a share, last year. Revenue rose to $20.7 million from $8.7 million. Isilon expects first-quarter revenue of $21 million to $23 million. For the full year 2007, the company expects revenue of $115 million to $125 million.

New Century Finan. tumbles on loan production warning

(10:40 AM ET) NEW YORK (MarketWatch) -- Shares of New Century Financial
NEW, +12.43%
tumbled nearly 30%, and hit a near 4-year low in intraday trading, after the Irvine, Calif. mortgage products provider warned late-Wednesday that 2007 loan production would fall short of expectations. The company said it now expects 2007 loan production to be 20% below 2006 levels, vs. previous forecasts that it would be flat, as the level of early-payment defaults and loan repurchases have led to tighter underwriting guidelines. The company also said it would restate results for the quarters ending March 31 through Sept. 30 to correct accounting errors related to loan repurchase losses. The stock was last down 28% at $21.75, and hit a low of $21.04 in intraday trading, the lowest prices seen since April 2003.

Beacon Roofing shares fall as first-quarter profit drops

(10:26 AM ET) SAN FRANCISCO (MarketWatch) -- Beacon Roofing Supply Inc.
BECN, -0.70%
shares fell 9.1% to $19.04 in Thursday morning trade after the Peabody, Mass.-based company reported fiscal first-quarter net earnings of $8.81 million, or 20 cents a share, down from $12.9 million, or 31 cents a share, in the year-ago period. Revenue rose to $380.2 million from $339.9 million. Analysts polled by Thomson Financial had forecast a per-share profit of 27 cents on revenue of $385.9 million.

Syntax-Brillian shares tumble on second-quarter results

(10:23 AM ET) SAN FRANCISCO (MarketWatch) -- Syntax-Brillian Corp.
BRLC
shares tumbled 15% to $8 in Thursday morning trade after the Tempe, Ariz.-based maker of HDTVs and digital entertainment products reported fiscal second-quarter net earnings of $14.8 million, or 25 cents a share. In the same quarter last year, the company posted a net loss of $1.23 million, or 4 cents a share. Revenue rose to $242.5 million from $60.2 million. Analysts polled by Thomson Financial had forecast a per-share profit of 24 cents on revenue of $241.8 million. For the fiscal third-quarter, Syntax-Brillian expects revenue of $160 million to $170 million, and for fiscal 2007, the company expects revenue of $650 million to $700 million.

TeleTech's quarterly profit grows; shares surge

(10:09 AM ET) SAN FRANCISCO (MarketWatch) -- TeleTech Holdings Inc.
TTEC, -1.58%
shares surged 20% to $32.51 in Thursday morning trade after the business process outsourcing company late Wednesday reported fourth-quarter net earnings of $21.4 million, or 30 cents a share, up from $10.09 million, or 14 cents a share, last year. Revenue rose to $336.7 million from $304.2 million. Analysts polled by Thomson Financial had forecast a per-share profit of 21 cents on revenue of $331 million. TeleTech expects 2007 revenue growth of 15% and 2008 revenue growth of 12% to 15%.

Akamai leads Net stocks lower

(9:43 AM ET) SAN FRANCISCO (MarketWatch) -- Shares of Internet companies were trading slightly lower early Thursday, with both the Dow Jones Internet Index
DJI_DJINET
and tech-heavy Nasdaq Composite Index
$COMPQ
off fractionally. Shares of Akamai Technologies Inc.
AKAM, -1.92%
fell 3.4% after reporting its fourth-quarter net income fell on higher costs and expenses. Shares of VeriSign, Inc.
VRSN, -1.31%
were down, fractionally, after it announced it will spend $100 million to upgrade its infrastructure, which is integral to reaching Web sites that have addresses ending in .com. Shares of Google Inc.
GOOG, -1.72%
were trading marginally lower after the company disclosed a detailed accounting of the amount of Google shares YouTube executives received after Google bought the free video sharing Web site for $1.65 billion. Meanwhile, shares of China's Sina Corporation
SINA, -0.60%
were trading 5.5% higher, after reporting fourth-quarter earnings cheered by some analysts.

(9:23 AM ET) NEW YORK (MarketWatch) -- Discount retailer Target Corp.
TGT, -0.34%
on Thursday said it expects February sales at stores open at least one year to rise 4% to 6%. In the year-ago period, same-store sales rose 3.6%.

Express Scripts boosts earnings view for fiscal 2007

(8:53 AM ET) NEW YORK (MarketWatch) -- Express Scripts Inc.
ESRX, -1.55%
Thursday lifted its outlook for fiscal 2007 to earnings of $4.08 to $4.20 a share from a prior projection for a profit of $3.90 to $4.02 a share. For the first quarter, the St. Louis provider of pharmacy benefit management services now sees earnings of 90 to 95 cents a share for the first quarter, above its previous estimate for earnings of 85 to 90 cents a share. The current average estimate of analysts polled by Thomson Financial is for earnings of 88 cents a share in the first quarter and $3.95 a share in fiscal 2007. The company also said it now sees cash flow from operations of between $700 million and $800 million for 2007. The company noted its outlook specifically excludes the financial impact of either a completed acquisition or an unsuccessful effort to acquire Caremark. Express Scripts added that its board has approved an increase in its buyback program, allowing for the repurchase of up to $1 billion worth of common stock or up to 14.1 million shares, whichever comes first. The company plans to "promptly commence" this share repurchase program if Caremark shareholders vote in favor of that company merging with CVS. Express Scripts' shares closed Wednesday at $72.08, up 1.2%.

Target same-stores sales up 5.1% in January

(8:48 AM ET) NEW YORK (MarketWatch) -- Target Corp. [sL tgt] said January same-store sales rose 5.1%, higher than the forecast of 4.6% in a survey of analysts by Thomson Financial. The retailer said total January sales jumped 37% to $4.89 billion. "Our January comparable store sales growth was in line with our expectations," said Bob Ulrich, chairman and chief executive officer of the Minneapolis-based retailer.

Dollar General same-store sales rise, top expectations

(8:45 AM ET) NEW YORK (MarketWatch) -- Dollar General Corp.
DG, -0.31%
said January same-store sales rose 6.8% over year-earlier levels, topping the average analyst estimate compiled by Thomson Financial of a 4% increase. Total sales for the month grew 12% to $832.1 million from last year's $745.7 million. Shares of the Goodlettsville, Tenn. discount retailer closed Wednesday down 19 cents at $16.81.

Foot Locker sees fourth-quarter profit 67-69c a share

(8:44 AM ET) NEW YORK (MarketWatch) -- Foot Locker Inc.
FL, -1.79%
Thursday said its same-store sales fell 3.4% in the fourth quarter. Total sales for the 13 weeks ended Jan. 27 slipped 0.6% to $1.553 billion from $1.564 billion a year ago. The New York-based athletic retailer now sees earnings of 67 to 69 cents a share in the fourth quarter, a performance that would be at the high end of its prior outlook. The current average estimate of analysts polled by Thomson Financial is for earnings of 64 cents a share in the January period. Foot Locker said its gross margin rate and total selling, general and administrative expenses were favorable, offsetting the same-store sales decline in the quarter. The stock closed Wednesday at $23.08, down 12 cents.

Express Scripts profit soars 32%

(8:36 AM ET) NEW YORK (MarketWatch) - Express Scripts earned $147.2 million, or $1.07 a share, in the fourth quarter, up from $111.1 million, or 75 cents, in the year-ago period, the company said Thursday. Excluding items, the pharmacy benefit management company would have earned $1.02 a share. Revenue came in at $4.53 billion, down slightly from $4.58 billion. The average estimate of analysts polled by Thomson Financial had been for 97 cents on $4.6 billion in revenue. Shares of St. Louis-based Express Scripts
ESRX, -1.55%
ended the Wednesday session up 1.2% at $72.08.

Circuit City to restructure operations

(8:29 AM ET) NEW YORK (MarketWatch) - Circuit City Stores Inc.
CC, -3.04%
on Thursday said it will overhaul its operations, close stores and a distribution center and shake up its merchandising team, in a move to improve its financial performance. The home electronics retailer will take a pretax expenses of about $30 million related to store and other facility closings, both domestic and international; $40 million to $60 million related to goodwill impairment; and about $15 million related to other restructuring activities. Of the total range of $85 million to $105 million, substantially all of the expenses will be incurred in the fourth quarter of fiscal 2007. As the company continues to move forward on its plans, additional expenses could be incurred in the fourth quarter. Richmond, Va.-based Circuit City said Douglas Moore, executive vice president and chief merchandising officer has left the company. The company said intensified gross margin pressures in the third quarter within the flat panel television category drove it to accelerate the timing of planned initiatives to improve sales and gross margin and improve the efficiency of its expense structure.

Dillard's same-store sales fall 3%

(8:11 AM ET) NEW YORK (MarketWatch) -- Dillard's Inc.
DDS, -1.97%
said Thursday its January sales at stores open at least a year fell 3%. Analysts, on average, forecast a same-store sales decline of 1.2%, according to Thomson Financial. Total sales for the four weeks ended Jan. 27 declined 2%, the Little Rock, Ark., department-store company said.

BJs Wholesale same-store sales rise 3.5%

(8:11 AM ET) NEW YORK (MarketWatch) -- BJs Wholesale Club Inc.
BJ
said January same-store sales rose 3.5%. Total sales at the Natick, Mass. retailer increased by 8.5% to $724.2 million. Analysts surveyed by Thomson Financial forecast a rise of 1.5% in same-store sales.

Federated beats same-store sales mark, lifts profit outlook

(8:07 AM ET) NEW YORK (MarketWatch) -- Federated Department Stores Inc.
FD
said January same-store sales rose 8.6%, ahead of the forecast of 4.6% in a survey of analysts by Thomson Financial. Total sales rose 19% to $1.78 billion. The retailer now expects fourth-quarter net income of $1.55 a share to $1.60 share, higher than its earlier forecast of $1.40 to $1.50 a share. The predication includes a one-time gain of 6 cents a share related to completion of its debt tender offer, as announced in December.

McDonald's January global comparable sales up 4.9%

(8:05 AM ET) NEW YORK (MarketWatch) -- McDonald's Corp.
MCD, -0.64%
Thursday said its global comparable sales increased 4.9% for January. The Dow component said systemwide sales for its namesake restaurants increased 8.3% for the month. The company's U.S. same-store sales rose 3.6% in January with its breakfast business, Snack Wrap product and extended hours contributing to the performance. McDonald's European business saw same-store sales growth of 6.8% for the month, driven by strength in France and Russia. Shares of Oak Brook, Ill.-based McDonald's closed Wednesday at $44.72, down a nickel.

Spirit Aero loss widens, sales forecast rises 25%

(8:05 AM ET) NEW YORK (MarketWatch) - Spirit AeroSystems Holdings Inc.
SPR, -0.23%
said Friday its fourth-quarter loss widened to $69 million, or 58 cents a share, from a restated loss of $47 million, or 41 cents a share, in the year-earlier period, before the company went public. Adjusting for its IPO costs, Spirit said its earnings were 62 cents a share. Analysts polled by Thomson Financial forecast a loss, on average, of 69 cents a share and $914.6 million in sales. The Wichita, Kan., aerospace company said revenues in the quarter rose 53% to $852 million from $557 million. Spirit expects 2007 revenue of $4 billion to $4.1 billion and earnings of $1.80 to $1.90 a share.

J.C. Penney same-store sales rise 3.6%

(8:04 AM ET) NEW YORK (MarketWatch) -- J.C. Penney Co.
JCP, -0.56%
said Thursday its January sales at department stores open at least a year increased 3.6%. Analysts, on average, expected it to post a same-store sales gain of 3.5%, according to Thomson Financial. Total department-store sales for the four weeks ended Jan. 27 rose 5.5%, the Plano, Texas, company said. For February, Penney forecast comparable department-store sales to increase in the low-single digits.

(7:59 AM ET) NEW YORK (MarketWatch) -- Optimer Pharmaceuticals
OPTR
on Thursday reduced the estimated price range of its initial public offering to $8-$9 a share. Earlier, the San Diego company planned to price at $12-$14 a share. The size of the deal remained at 5.25 million shares with underwriter Piper Jaffray and Jefferies & Company.

Reynolds American earnings fall on shipments decline

(7:55 AM ET) NEW YORK (MarketWatch) - Reynolds American Inc.
RAI
Thursday reported fourth-quarter net income of $180 million, or 61 cents a share, down from $297 million, or $1.01 a share, citing lower cigarette shipments. On an adjusted basis, earnings were 81 cents a share, down from $1.02 a share. The Thomson First Call average analysts' estimate was for earnings per share of 85 cents. Revenue rose to $2.07 billion from $2.05 billion. The company also forecast 2007 earnings per share of $4.25 to $4.45; the First Call estimate is for $4.34. On Wednesday the company's stock fell 33 cents to $63.74.

Fred's same-store sales rise 2.4%

(7:53 AM ET) NEW YORK (MarketWatch) -- Fred's Inc.
FRED, -1.32%
said Thursday its January sales at stores open at least a year increased 2.4%. Analysts, on average, expected it to post a same-store sales gain of 2.1%, according to Thomson Financial. On an adjusted basis, total sales for the five weeks ended Feb. 3 rose 8% to $163.9 million, the Memphis, Tenn., retailer said.

Talbots backs quarterly forecasts

(7:53 AM ET) NEW YORK (MarketWatch) - Clothing retailer Talbots Inc.
TLB, +6.63%
on Thursday backed its forecast for consolidated fourth quarter earnings per share to be about breakeven. It also expects fourth quarter acquisition related costs and adjustments of about 14 cents a share and stock option expense of about 4 cents a share. Talbots also confirmed its previously announced outlook for consolidated first-quarter profit per share to be in the range of 36 cents to 43 cents on a reported basis. The forecast is based on a total company same-store sales growth target of low single digits, with both the Talbots and J. Jill brand currently planned to increase in the low single digits. The forecast for the first quarter includes acquisition related costs and adjustments of about 12 cents per share. Analysts, on average, expect it to report profit of breakeven in the fourth quarter and 39 cents a share in the first quarter, according to Thomson Financial.

Waste Management net income falls

(7:47 AM ET) NEW YORK (MarketWatch) -- Waste Management Inc.
WMI, +0.83%
said Thursday fourth-quarter net income for the three months ended Dec. 31 fell to $246 million, or 46 cents a share, from $290 million, or 52 cents a share in the year-ago period. Revenue fell to $3.28 billion from $3.37 billion. Excluding items, net income fell to $252 million, or 47 cents a share, compared with $255 million, or 46 cents a share last year. Analysts surveyed by Thomson Financial forecast earnings of 46 cents a share and revenue of $3.4 billion, on average. For 2007, the Houston-based garbage hauler plans to spend an additional $700 million for the retirement of debt, acquisition or other business opportunities, or additional share repurchases. Income from operations as a percent of revenue is projected to increase more than 1% in 2007, the company said.

Martin Marietta fourth-quarter profit $63.5 mln vs $47.8 mln

(7:46 AM ET) NEW YORK (MarketWatch) -- Martin Marietta Materials INc.
MLM, -2.29%
Thursday reported fourth-quarter earnings of $63.5 million, or $1.36 a share, up from a year-ago profit of $47.8 million, or $1.02 a share. The latest results include a charge of 5 cents a share related to structural composites. Sales rose in the latest three months to $473.3 million from $437.7 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of $1.34 a share in the December period. Looking ahead, the Raleigh, N.C., producer of construction aggregates said it expects earnings of $5.95 to $6.50 a share for 2007 and a profit of 36 to 52 cents a share for the first quarter. Wall Street's current consensus estimates are for earnings of $6.52 a share for the year and 62 cents a share for the March period. The company also said it plans to provide definitive information on its capital structure and leverage targets in May when it reports its first-quarter results. The stock closed Wednesday at $118.25, down 31 cents.

Talbots 4th qtr same-store sales down 1.6%

(7:41 AM ET) NEW YORK (MarketWatch) - Talbots Inc.
TLB, +6.63%
said Thursday its fourth-quarter sales at stores open at least one year fell 1.6%. By brand, same-store sales for Talbots decreased 2.1%. For the J. Jill brand, same-store sales increased 1.5% in the period. Total sales for the 14 weeks ended Feb. 3 rose to $638 million from $486.2 million.

Sharper Image same-store sales drop 25%

(7:39 AM ET) NEW YORK (MarketWatch) -- Sharper Image Corp.
SHRP
said Thursday its January sales at stores open at least a year fell 25%. Analysts, on average, expected it to post a same-store sales decline of 21.2%, according to Thomson Financial. Total sales for the month dropped 24% to $17.8 million, the San Francisco retailer said.

CORRECT: Penn National Gaming net income doubles

(7:38 AM ET) NEW YORK (MarketWatch) -- Penn National Gaming Inc.
PENN, -2.71%
said Thursday that fourth-quarter net income for the three months ended Dec. 31 rose to $87.3 million, or $1 a share, from $37.6 million, or 44 cents a share in the year-ago period. Revenue increased to $572.9 million from $504.5 million. Earnings from continuing operations were $1.01 a share in the latest quarter. Analysts surveyed by Thomson Financial forecast earnings of 36 cents a share and revenue of $567.8 million, on average. (Corrects net income and revenue figures from latest quarter.)

Thomson Corp. net income rises

(7:25 AM ET) NEW YORK (MarketWatch) -- Thomson Corp.
TOC, -2.12%
said Thursday fourth-quartet net income for the three months ended Dec. 31 rose to $390 million, or 61 cents a share, from $249 million, or 38 cents a share in the year-ago period. Revenue climbed to $1.9 billion from $1.7 billion. Analysts surveyed by Thomson Financial forecast earnings of 61 cents a share, on average. Adjusted earnings increased to $321 million, 50 cents a share, from $298 million, or 46 cents a share. For 2007, the companay said operating margin is expected to be at or above 2006 levels, despite increasing investments in efficiency initiatives.

Spectrum Brands swings to loss, revenue declines

(7:25 AM ET) NEW YORK (MarketWatch) -- Spectrum Brands
SPC, -0.22%
said it swung to a loss of $18.8 million, or 38 cents a share, from a profit of $2.3 million, or 5 cents a share, a year earlier. Excluding non-recurring items, such as a loss from discontinued operations and a restructuring charge, the Atlanta consumer products company would have earned 12 cents a share in the quarter ending December. Revenue fell 0.3% to $564.6 million from last year's $566.3 million, as a 6% drop in battery sales offset 7% growth in Remington branded product sales and a 4% increase in Global Pet sales. Analysts surveyed by Thomson Financial had been expecting earnings of 8 cents a share and revenue of $640.3 million, on average. The stock closed Wednesday up 2 cents at $11.60.

New York & Co. Jan. same-store sales up 2.3%

(7:22 AM ET) NEW YORK (MarketWatch) - New York & Co.
NWY, +0.00%
said Thursday its January sales at stores open at least one year rose 2.3%. Analysts, on average, had expected same-store sales to rise 2.9%, according to Thomson Financial. Net sales for the five weeks ended Feb. 3 rose 32.4% to $83.7 million. The retailer backed its fourth-quarter profit forecast of 37 cents to 46 cents a share. The company continues to expect to report an increase in gross margin for the fourth quarter due to improved merchandise margins and also still expects non-recurring litigation expenses of about 2 cents a share, which are included in its outlook.

Zale says on track to meet high end of 2Q outlook

(7:17 AM ET) NEW YORK (MarketWatch) -- Jewelry retailer Zale Corp.
ZLC, +0.71%
said it's comfortable with the top end of its outlook for earnings of $1.85 to $1.90 in the second quarter. The average estimate of analysts polled by Thomson Financial is for earnings of $1.87. Same-store sales rose 1.4% in the quarter, while total revenue rose to $1.019 billion from $979 million. Shares closed up 1.4% at $28.60 on Wednesday.

Bebe Jan. same-store sales up 0.8%

(7:16 AM ET) NEW YORK (MarketWatch) - Bebe Stores Inc.
BEBE, -1.10%
said Thursday its January sales at stores open at least one year rose 0.8%. Analysts, on average, had expected same-store sales to rise 1.9%, according to Thomson Financial. Total sales for the five weeks ended Feb. 3 rose 35.5% to $47.7 million. Due to the 53rd week in fiscal 2007, January 2007 same store sales are based on the first four weeks of the five-week period.

Qwest swings to $194 million profit amid flat sales

(7:14 AM ET) LONDON (MarketWatch) -- Qwest Communications
Q, -0.96%
swung to a fourth-quarter profit of $194 million, or 10 cents a share, on improving productivity, operating efficiencies and a lack of debt-related charges, with revenue up 0.2% to $3.49 billion. Analysts polled by Thomson Financial expected earnings of 8 cents a share on revenue of $3.49 billion. The Denver telecom said it benefited from growth in data and Internet services across all sales channels, with revenue flat as customers migrated away from legacy products. In the year-ago quarter, Qwest lost $528 million after a $430 million charge for det extinguishment.

PepsiCo profit rises 60%

(7:10 AM ET) NEW YORK (MarketWatch) -- PepsiCo said Thursday that fourth-quarter profit rose 60%, helped by strength in its international business, along with non-carbonated drinks and salty snacks in the U.S. PepsiCo earned $1.78 billion, or $1.06 a share, up from $1.11 billion, or 65 cents in the year-ago period. Revenue came in at $10.38 billion, up form $10.01 billion. Excluding various tax and restructuring items, PepsiCo
PEP, -0.60%
would have earned 72 cents a share. The average estimate of analyst polled by Thomson Financial had been for the company to post a profit of 72 cents a share on revenue of $10.4 billion, according to Thomson Financial.

Limited Brands Jan. same-store sales up 11%

(7:09 AM ET) NEW YORK (MarketWatch) - Limited Brands Inc.
LTD, -9.77%
said Thursday its January sales at stores open at least one year rose 11%. Analysts, on average, had expected same-store sales to rise 7.8%, according to Thomson Financial. Net sales for the five weeks ended Feb. 3, 2007 rose to $1.06 billion, compared to sales of $813.4 million for the four-week period ended Jan. 28, 2006. Last year's sales include $30.4 million related to an adjustment for gift card breakage at Bath & Body Works and Express. Excluding the fifth week in January this year and the gift card breakage adjustment from last year, the sales increase from the comparable four-week period last year was 14%.

(6:47 AM ET) LONDON (MarketWatch) -- Food and agriculture company Bunge
BG, -2.09%
said its fourth quarter net profit rose 77% to $264 million, or $2.12 a share, from $149 million, or $1.25 a share in the year-earlier period. Net sales rose 14% to $7.68 billion amid signs of a turnaround in the Brazilian business and higher demand for core products related to the biofuels industry. The company said profit for the quarter included net gains of $74 million, or 60 cents a share. Analysts polled by Thomson Financial were expecting earnings of $1.44 a share on revenue of $7.44 billion. The company said it expects earnings in 2007 to be in a range of $4.56 to $4.71 a share. Separately Bunge announced that its CFO William Wells will leave the company effective April 1. It added it has begun a search for a replacement.

Warner Music posts below-forecast 74% profit decline

(6:46 AM ET) LONDON (MarketWatch) -- Warner Music Group
WMG, -3.70%
said its profit dropped 74% to $18 million, or 12 cents a share, as revenue declined 11% to $928 million. Analysts polled by Thomson Financial expected earnings of 24 cents a share on revenue of $945 million. The company said it faced "unusually difficult" year-ago comparisons, and it said digital revenue represented 11% of total revenue during the quarter. Softer domestic and European sales hurt its recorded music division, while music publishing revenue edged up 2%.

Beckman Coulter posts quarterly EPS of 97 cents a share

(6:46 AM ET) LONDON (MarketWatch) -- Beckman Coulter, Inc.
BEC, +3.66%
a maker of testing instruments, reported fourth-quarter net income of $62.3 million, or 97 cents a share. Excluding one-time items, the company would have earned $1.03 a share compared to 73 cents a share a year ago. Revenue rose 8.6% to $712 million. The company said it sees 2007 adjusted earnings in the range of $3.10 to $3.25 a share. It expects revenue to increase by 7% to 9%.

Corrections Corp. profit up 38% as demand for prison beds up

(6:38 AM ET) LONDON (MarketWatch) -- Prison operator Corrections Corp. of America
CXW, -2.77%
said its fourth-quarter net profit rose 37.6% to $32.2 million, or 52 cents a share, from $23.4 million, or 39 cents a share, a year earlier. Revenue for the quarter ending Dec. 31 rose 10.2% to $349.6 million. Analysts polled by Thomson Financial had been expecting earnings of 44 cents a share on revenue of $343 million. The company said its results were driven by strong demand for prison beds from both federal and state customers. The company said average compensated occupancy for the period rose to 96.6% from 93.1%. The company said it expects earnings in the first quarter to be in the range of 43 cents to 37 cents a share, with earnings for 2007 in the range of $1.95 to $2.05 a share.

Thermo Fisher Scientific's post-merger quarterly net drops

(6:28 AM ET) WASHINGTON (MarketWatch) -- Thermo Fisher Scientific Inc.
TMO, -1.45%
reported fourth-quarter net income of $25.3 million, or 8 cents a share, down from $56.4 million, or 34 cents, earned in the final three months of 2005. The Waltham, Mass.-based company's quarterly revenue reached $1.67 billion from $740.8 million. Results reflected the merger of Thermo Electron with Fisher Scientific International, a deal completed last November. Earnings, on an adjusted basis, amounted to 57 cents a share for the latest quarter, up from the prior year's 47 cents. Analysts, on average, had been looking for earnings of 53 cents a share on revenue of nearly $1.61 billion, according to estimates compiled by Thomson Financial. In addition, the maker of scientific instruments affirmed its adjusted 2007 profit estimate of $2.35 to $2.45 a share and pegged full-year revenue at $9.4 billion to $9.5 billion; analysts' averages stand at $2.41 a share and $9.47 billion, respectively. Shares of Thermo Fisher Scientific ended Wednesday's trading at $49.71, up 41 cents, and touched a 52-week high at $49.78 earlier in the session.

Swift Energy profit edges higher, proved reserves up 7%

(6:26 AM ET) LONDON (MarketWatch) -- Oil and gas company Swift Energy Co.
SFY, -0.74%
said its fourth-quarter net income rose 2% to $35.3 million, or $1.16 a share, from $34.7 million a year earlier. Total revenue for the period ending Dec. 31 rose 30% to $158.6 million as production climbed from the hurricane-impacted quarter in 2005. The company said it plans to spend $350 million to $400 million in total capital expenditure during 2007, with around 90% of the budget targeted at domestic activities. Swift Energy said it is also targeting total production to increase 7% to 10% in the year and proved reserves to increase 4% to 6%. Separately the firm said proved reserves at the end of 2006 totalled 817 billion cubic feet equivalent, an increase of 7% on the proved reserves at the end of 2005.

Autoliv profit rises on tax benefit, car safety features

(6:26 AM ET) LONDON (MarketWatch) -- Swedish-American auto parts maker Autoliv
ALV, -1.96%
(SE:ALIV)said its fourth-quarter profit rose to $103 million, or $1.27 a share, from $70 million, or 81 cents a share, helped by $24 million in tax items. Sales increased by 9% to $1.6 billion with the organic sales portion growing at 4% despite a 4% decrease in West European and an 8% drop in North American light vehicle production, the safety bag maker said. Adjusted earnings were 97 cents a share, a penny below Thomson Financial-compiled analyst forecasts. Autoliv's market is driven not only by vehicle production but also by the fact that new vehicle models are being equipped with an increasing amount of airbags and other safety systems in response to consumer demand, new crash test programs and regulations, the company said. Sales are expected to grow 4% during the quarter and at least 3% in 2007, with operating margin above 7.5% for the quarter and 8% for the year.

Regal Entertainment profit falls 17%, sales slip 2%

(6:21 AM ET) LONDON (MarketWatch) -- Regal Entertainment Group
RGC, -1.15%
an operator of movie theaters, said fourth-quarter net income fell 17% to $29.2 million, or 19 cents a share, from $35.1 million, or 23 cents a share, a year earlier. Adjusted earnings came in at 20 cents a share. The average forecast of analysts polled by Thomson Financial was for earnings of 18 cents a share. Sales slipped 2% to $653 million. The company declared a cash dividend of 30 cents a share. The company said it's optimistic regarding the industry box office potential for fiscal 2007 and expects to deliver another year of solid financial performance.

JoS A Bank sees 15% EPS share rise; Jan. sales slip

(6:15 AM ET) LONDON (MarketWatch) -- JoS A Bank Clothiers
JOSB
said annual earnings will be at least $2.25 a share, up 15% from last year, with total sales up 18% to $546 million. January same-store sales dropped 4.7%, while direct marketing sales improved 42%, the company said. Analysts polled by Thomson Financial expected a 1% rise in January same-store sales, and annual earnings of $2.17 a share.

Sally Beauty's quarterly same-store sales up 5%

(6:15 AM ET) WASHINGTON (MarketWatch) -- Sally Beauty Holdings Inc.
SBH, -1.47%
reported net income of $3.1 million, or 2 cents a share, for the first quarter ended Dec. 31, the company's initial reporting period since its separation from Alberto-Culver
ACV, -0.71%
last November. Quarterly sales reached $629.9 million; same-store sales rose 5%. Earnings, adjusted to exclude factors related to the Alberto-Culver separation, were $16 million, or 9 cents a share. Analysts, on average, had been looking for the Denton, Tex.-based company to earn 9 cents a share on revenue of $626 million, according to estimates compiled by Thomson First Call. Shares of Sally Beauty added 40 cents, or 4.4%, to end Wednesday's trading at $9.40.

Watson Wyatt's profit rises 51%; lifts outlook

(6:14 AM ET) LONDON (MarketWatch) -- Watson Wyatt Worldwide, Inc.
WW
a provider of human-resources and financial-management consulting services, said second-quarter net income jumped 51% to $26 million, or 58 cents a share, from $17 million, or 41 cents a share, a year earlier. Revenue climbed 16% to $366 million. The average forecast of analysts polled by Thomson Financial called for earnings of 47 cents a share. The company raised its outlook for the year, saying it now expects to post 2007 earnings in the range of $2.41 to $2.44 per share on revenue of $1.43 billion to $1.46 billion. Previous guidance called for earnings of $2.26 to $2.29 a share on revenue of $1.40 billion to $1.43 billion. The company lifted its guidance based on the strengthening of its performance and the acquisition of its Dutch affiliate Watson Wyatt Brans & Co. For the third quarter, the group sees earnings in the range of 61 cents to 63 cents a share on revenue of $370 million to $374 million.

(5:24 AM ET) TEL AVIV (MarketWatch) -- Toll Brothers Inc.,
TOL, -2.70%
the Horsham, Pa., home builder, reported that fiscal 2007 first-quarter home-building revenue fell 19% to $1.09 billion from $1.34 billion in the year-earlier period. The company said the backlog at Jan. 31, the quarter's end, was off 30% from a year earlier, at $4.15 billion. Toll's net signed contracts were valued at $749 million, down 34%. Net of cancellations, first-quarter contracts fell 33% to 1,027 units from 1,544 units in the first quarter of fiscal 2006. And Toll estimated that write-downs for the quarter would range from $60 million to more than $160 million. Chairman and Chief Executive Robert I. Toll said in a statement that "it appears that the pace of cancellations is starting to abate." The rate was 29.8% in the first quarter compared with 36.9% in the fiscal fourth quarter. But "we are still well above the Company's historical average of about 7%," he said. "A few markets," such as Hoboken and Jersey City, N.J., Manhattan and Brooklyn, "are quite strong," the executive said. "Some markets, such as Detroit, Minneapolis, Chicago, Reno, and parts of Florida, may not yet have stabilized."

United Retail January same-store sales rose 2%

(3:42 AM ET) TEL AVIV (MarketWatch) -- United Retail Group Inc.,
URGI
the Rochelle Park, N.J., operator of the Avenue chain of stores specializing in large sizes for women, reported that for the first four weeks of fiscal January, same-store sales rose 2%. A survey of analysts by Thomson Financial produced a consensus estimate that compararable sales would be flat for the period. Net sales for January 2007 increased 29% to $35.9 million from $27.7 million for January 2006. The latest month included five weeks while the year-earlier month included four weeks. Net sales increased to $28.7 million for the first four weeks of the fiscal month, URGI said. Fiscal fourth-quarter same-store sales were flat. (Adds Thomson Financial estimate.)

Costco January same-store sales rose 2%, total up 7%

(3:26 AM ET) TEL AVIV (MarketWatch) - Costco Wholesale Corp.,
COST, -0.74%
the Issaquah, Wash., warehouse retailer, reported that January same-store sales rose 2% and total sales climbed 7%. A survey of analysts by Thomson Financial produced a consensus estimate of same-store sales 3% higher for the month. Costco's January same-store sales rose 3% in the U.S. and were flat internationally. Costco's year-ago period had one additional selling day due to the timing of the New Year. That timing cut the latest same-store sales by 3%, Costco said.

Yell Group 9-month net up 8.4% on 29% higher revenue

(3:08 AM ET) TEL AVIV (MarketWatch) -- Yell Group Plc,(UK:YELL)the publisher of phone directories, reported nine-month net income rose 8.4% on 29% higher revenue. Earnings reached 159.8 million pounds ($321.1 million) from 147.3 million, while revenue rose to 1.43 billion pounds from 1.11 billion. Earnings per share slipped 0.5% to 20.6 pence from 20.7. Shares outstanding rose 9.1% to 768.9 million from 704.7 million. Adjusted earnings rose 19% to 190.6 million pounds, or 24.5 pence a share. Revenue excluding acquisitions rose 7.4% at constant exchange rates. Chief Executive John Condron said in a statement that the company's online channels, which include yellowbook.com, were particularly strong in the period. Yell Group reiterated its estimate that U.K. revenue would grow 3% for the full year, driven entirely by yell.com.

Rolls Royce profit climbs, all segments see higher revenue

(2:46 AM ET) LONDON (MarketWatch) -- U.K. engineering company Rolls Royce Group(UK:RR)said its 2006 net profit jumped to 994 million pounds from 347 million pounds. Revenue grew 8.4% to 7.16 billion pounds. The company's profit benefited from a turnaround in financing costs. Underlying pretax profit rose 19% to 705 million pounds, driven by growth in its civil aerospace, defense aerospace and marine segments. Rolls Royce also said it will pay a final dividend of 5.92 pence, making an increase for the year of 10%. The company said each of its businesses offers significant opportunities for organic growth. The group said it ended the year with a cash balance of 826 million pounds, a substantial portion of which will be used in 2007 to address its pension deficit.

BG Group profit down 18% on gas prices, North Sea taxes

(2:44 AM ET) LONDON (MarketWatch) -- BG Group
BRG, -0.96%
(UK:BG), the U.K. gas and oil exploration company, said fourth-quarter profit dropped 18% to 410 million pounds, with revenue down 10% to 1.9 billion pounds. Though production rose 5% and it saw "strong" growth in the liquified natural gas business, lower gas prices, a weaker U.S. dollar and an increased North Sea tax rate. The company affirmed its earnings outlook to 2009, sees exploration and production volume growth of 5% to 7% a year to 2009, and is "more confident" of achieving higher levels of its 6%-to-10% volume growth view to 2012.

Renault's annual profit drops 15%, sees 2007 margin rise

(2:36 AM ET) LONDON (MarketWatch) -- French automaker Renault(FR:013190)reported a 15% annual profit decline to 2.87 billion euros, with revenue slipping 1% to 41.53 billion euros after vehicle sales dropped 4%. Its operating margin dropped to 2.6% from 3.2% on lower sales volue in Europe, higher-than-expected hike in raw material costs and the cost of transition to tougher emissions standards. It expects its 2007 operating margin to improve to 3%, with first-half operating margin declining before an improvement in the second half. Global sales also will be geared toward the second half on the launch of Twingo and Laguna models in Europe. The launch of Logan in Brazil, Iran and India in the spring will also lift sales, the company said.

Imperial Chemical quarterly profit falls, sales flat

(2:35 AM ET) LONDON (MarketWatch) -- Imperial Chemical Industries Plc(UK:ICI)said Thursday that its fourth-quarter net profit fell 37% to 67 million pounds ($132 million) as sales dipped 0.4% to 1.16 billion pounds. Comparable sales, excluding currency effects, acquisitions and divestitures, rose 6%. Adjusted pretax profit was unchanged at 90 million pounds. The company said it continued to make good progress in focusing its portfolio on its coatings, adhesives and starch business. The company said the outlook remains positive, adding there are a few signs of improvement in the North American market for decorative paint. Overall the company said it expects to make further progress in 2007.

Unilever's adjusted profit up 30% on no sales growth

(2:31 AM ET) LONDON (MarketWatch) -- Anglo-Dutch consumer products group Unilever
UN, -0.83%UL, -0.85%
said fourth-quarter profit from continuing operations improved 30% to 898 million euros, while sales were flat at 9.73 billion euros. During the quarter it had underlying sales growth of 3.4%, which the company said came against strong comparisons and was mostly on volume increases, and an operating margin of 10.9%. It expects business and competitive environment in 2007 to be broadly unchanged, with consumer demand remaining modest in Europe but robust elsewhere and underlying sales growth within its 3% to 5% range and it expects operating margins to climb to over 13.6%. It will also buy back 1.5 billion euros of shares in 2007. Longer term, it's expect underlying sales growth of 3% to 5% and an operating margin in excess of 15% by 2010 after a normal level of restructuring of 0.5% to 1% of sales. It's cutting longer term guidance for the tax rate from around 28% to around 26%.

ABN Amro year net up 4.6%; lifts payout, plans buyback

(2:16 AM ET) TEL AVIV (MarketWAtch) -- ABN Amro Holding NV,
ABN, -2.56%
(NL:30110)the Amsterdam banking group, reported fourth-quarter earnings up 4.9% and full-year net income up 4.6%. The company also increased its annual dividend 4.5% to 1.15 euros a share and said it would buy back 1 billion euros ($1.29 billion) of shares in the first half. Fourth-quarter earnings were 1.39 billion euros compared with 1.32 billion in the year-earlier period and 1.14 billion in the third quarter. For the year 2006, profit was 4.78 billion euros, ro 2.5 euros a share, compared with 4.44 billion euros, or 2.43, in 2005. Revenue in 2006 rose 20% to 22.66 billion euros. The company targets adjusted 2007 profit, excluding charges for divestitures and resstructuring, of at least 2.3 euros a share.

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